Seven in 10 landlords in the UK still own rental properties with an energy performance certificate rating of D or below, according to new research by Shawbrook.
The research also shows that only a quarter of landlords’ portfolios contain properties that all meet the C target for energy efficiency.
Nearly four-in-10 only have properties that are rated D or below.
While landlords are currently able to let homes which have an EPC rating of D and above, standards are widely expected to become tougher.
The government has previously set out an aspiration for a minimum C rating in England and Wales by April 2025.
Future legislation could see landlords unable to take on new tenants or face fines if they fail to comply with the changes.
Landlords estimate that bringing the average property up to a C standard would cost them almost £2,000. However, there is a concern that with the cost of labour and materials going up, landlords could be underestimating the cost of the work.
The research shows that 79 per cent of landlords with an active mortgage have at least one property rated D or below, indicating a role for lenders in making efficiency improvements.
The findings are part of Shawbrook’s second EPC report. It explores the current EPC challenge, including the role of the cost-of-living crisis in driving change. It also investigates the knowledge gap and the role of government and the wider industry to support landlords in improving efficiency.
Emma Cox, real estate managing director at Shawbrook, comments: “It’s likely that efficiency standards will become tougher in the future, which is just one of the reasons that landlords should take note of these proposals and start making a plan.
“Landlords should know that they are not alone in this. Lenders, including Shawbrook, are working hard to help drive awareness of regulatory change, support with creative product options, and offer practical support to customers and partners. Standard products like bridging finance can also play a role in securing the future of the sector.
“During such a challenging period for the UK in general, we remain committed to bringing together all industry stakeholders to develop the conversation around EPCs, and to make real progress towards our shared goals.”
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I have a plan, do nothing until we all know for sure the full implications and costings, then if I feel the cost not viable evict and sell, I have 16 properties to sell off 1 per year , none are mortgaged, even at knocked down prices that'll see me and my wife out in comfort
Wish you well with all of that Andrew - However be aware of Jeremy Hunts mention of increasing CGT.
I take your point Zoe, but even after paying CGT there should be enough, and I won't be selling them all off, I have a few Cs and some that might get up to a C without too much cost, but the no hopers that would cost thousands can go, no point in tipping hard earn't cash down the drain
According to my EPC (D rating) I should put in Solar photovoltaic panels and Solar water heating at an estimated cost of £11,500 in order to save $400 per annum. If it was me paying for the heating etc., at current values the break even point would come in about 30 years and I'd be long dead before then. But since I would never personally get the benefit of the saving, I'd never break even so that's thousands of pounds down the drain.
In any event, solar panels only have a life expectancy of 25 years, so what happens then? Hmm!
Research says that the manufacture of solar panels is not good for the environment, which rather defeats the whole point of the exercise.
And to show how ridiculous the EPC stuff is, my certificate says I need under-floor insulation, which I already have 'cos it was installed with my new floor, but since the inspector couldn't see it (left his x-ray glasses at home) he "assumed" there was none and would not change the certificate. That just makes a complete mockery of it all, so why even bother? I sure as hell am not going to start forking out a shed load of cash, I'll sell up first.
Simon I agree with all of the above. On tbe point if the floor insulation. Yes if we cannot see it we cannot prove it. The legislators do random audits on the EPCs. Audits also also trigger at a rating going from E to C. So my advise to any landlord or owner is to get evidence of any installation and or have an updated EPC at the time of any Energy improvements so us assessors can document this accurately and thus avoid the EPC being rejected and also lose our liscence to produce them. 3 strikes and we are not allowed to assess. Floor insulation only adds an extra point so doesn't make a huge difference but it can be a very cheap way of scrapping into a C as there isn't a minuim level of insulation for this to trigger a small extra point.
Shellet munn. How is digging up concrete floors in all downstairs rooms, 2 with real oak wood block floors to install underfloor insulation going to be cheap. That was one of the recommendations totalling nearly £30k to upgrade from a D to C for a saving of under £400 per annum. The previous EPC on the property only required a new boiler to upgrade to C, which was done and now the goalposts moved. The EPC is not fit for purpose and anyone can qualify as an assesor by doing a 2 day training course and have absolutely no idea about thermodynamics, heat transfer through structures etc.
This EPC rubbish needs to be ditched and replaced by competent assessors with an education and qualification in the science involved. I sold that proerty by the way.
Up to a point I do agree William, did you also know that you don't need to be a time served qualified car mechanic to become a MOT tester, all a bit odd isn't it ? But on the other hand if an EPC assessor had to be qualified to the standards that you are saying an EPC would be costing us 2 or 3 times what we are paying at present
SHOCK they say 😂😂 nope, not shocked at all, I am in the category and have a fool proof solution…. I am selling the lot 😂😂💰💰
I have one property that is EPC D and can't get any higher. It was G when I bought it so has had every possible improvement already.
I have one that says it's EPC E because the assessor decided to downgrade it to get grant funding for cavity wall insulation and then didn't do a new assessment after the insulation was done. It used to be D so I fully expect it will get a C next time I get it assessed.
Another one is a very high D and just needs the night storage heater replacing with a Dimplex Quantum. No point doing it until I have to.
I'm hoping that 2 of the above properties will become C rated without doing anything when the EPC algorithm is updated. Anyone know when that's supposed to be happening?
Shelley, the lady that does my EPCs done a blank assessment for me a few yrs back on an F rated flat above an old corner shop, I then installed secondary glazing as she had recommended, she then came back and we just got an E by 2 points, that one's never going to get a C, not even going to be worth bothering to try, when the time comes I shall evict the tenant and let the shop below use it as storage
Shelly - I do tend to have a pre assessment done on newly purchased properties so I target improvements most effectively.
It's the house I've owned since before EPCs were invented that may be more tricky.
It's EPC has solid floor insulation as a recommendation. You said it doesn't have a minimum level, which seems bizarre but possibly a game changer. How thin can it actually be? Can it be the insulated foil type underlay for laminate flooring? Can it be a decent carpet underlay? Can it be 6mm insulated tile backer board?
Obviously I'd always assumed it had to match whatever Building Regulations require for new builds and I've never found any guidance to state otherwise so a pointer to the actual requirements would be much appreciated.
How about this one. I installed a heat pump in one room to replace a gas fire in the property I discussed previously. I lost some points on the EPC for removing a gas appliance and intalling an electric one. As I said EPC's are just a joke.
If the government wishes to bring in these EPC requirements then it should apply to all accommodation and not just landlords. Then a consistent approach can be applied and financial support offered. To inflict this on just landlords is prejudicial!
A very good point and I'd like to hear someone try to justify it
Exactly Private Landlords to save the Planet, what about the other bigger half of housing its not applicable to them. We are just continuously unfairly targeted on every aspect of housing.
I seen people digging up concrete floors to put insulation underneath, this is mad. There has to be an over lay solution and anyway with heating in on for long periods in winter the slab warms up and acts like a giant radiator, haven’t you got lumps of concrete in your storage radiators.
Most houses have low EPCs because we have only just started insulating new houses properly! Even houses built as little as 5yrs ago will need retrofitting to reach Govt targets, leaving owners to pay up to 5 times as much as it would've cost to do when building.
Building Regs - the lowest acceptable standard. I think I need to buy shares in house building companies - all Govt policies seem to be aimed at increasing their bottom line!
Houses built in the last 20 years are nearly all EPC C.
I've got a couple that were built in the 1980s that have always been C.
It's mainly 1950s properties I'm having issues with.
I've got a 1997 3 bed semi and it's an EPC D. Requires a new boiler to get to a C.
Jo - yes most properties from the 1980s or even the 1970s can get to a C fairly easily but the Govt aim is B & then maybe A. Most properties built 5 years ago or more will not hit these targets.
Bet they’re still great places to live though
This whole crazy epc stuff reminds me of a sci fi nightmare
Well we will see rentals sold and a shrinking PRS and guess what - rents will go up and it will be the LLs fault! No its the Governments fault using the PRS to hit their green targets. When the time comes I will sell sell sell!
By 2030 they want EPC. B. So any property will need a stress test before even looking at a C rating. And what expenditure involved.
Most of our stock is E and that is a push as they are rural listed cottages. 85% of the EPCs we have recommend the installation of a wind turbine and that gets us to just a C! They estimate cost at around £20,000 but that's without planning, the real costs would be around £60k and I'm sure the neighbours are going to love all these wind turbines in their view.
By 2030 I’d say 90% of properties in the uk won’t be able to meet the new b rating
Actually more like 100%
You’ll own nothing… including your own house
Absolutely!
George. Absolutely right we will own nothing that’s what THE WHITE PAPER is all about removal of ownership.
A guy can come in off the Street take up occupancy stay for ever or pea off at any time he likes.
So that’s better than owning it no Mortgage’s to worry about
no Regulations, no How 2 Rent to serve, no worries about Gas Certificate’s Boiler breakdown or Appliances, no Electric Domestic Installation Condition Report, EPC provided for you, no Heat Detection system / Emergency lighting or annual Certs to get, your Deposit still in your back pocket can’t be touched, HMO most likely required £1550. App’ free reoccurring, ICO registration + fee required, The Worthless Tenancy Agreement, Big fine Penalty or Confiscation Order for you for being a landlord and a Criminal Record for good measure, don’t forget to maintain, Decorate and remove their rubbish, my goodness have we got a death wish.
Did someone say we are having a Crash I wonder why.
Mr Gove you are a star how do you do it ? Grow up.
The problem is, anyone who is not a landlord sees things differently. They see someone who is rich because they have more properties with £1,000's coming in each month. They don't see what goes out each month, plus all the problems and stress when things don't go to plan.
We work out arse off for it don't we John.
The Great Reset unfolding. Thought it was a conspiracy theory but slowly becoming conspiracy fact. I don't recall a single person voting for this
I don't think anyone voted for what politicians delivered. Theresa May was Brexit means Brexit and delivered the opposite.
I think May was likely the worst PM of my life time, what a stupid woman
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